Pensions: Index Linking

Anne McGuire: To ask the Secretary of State for Work and Pensions what estimate he has made of the change in expenditure in the Financial Assistance Scheme attributable to the use of the consumer prices index for pension indexation in the next five years.

Steve Webb: The figures show the estimated annual reduction in Financial Assistance Scheme expenditure as a result of switching the indexation of payments in payment and revaluation of payments in deferment from RPI to CPI from 2011.
	Figures are in cash terms and are rounded to the nearest £100,000. The reduction represents 0.1% of estimated total FAS spending in each year.
	
		
			   CPI from 2011 (£) 
			 2011 100,000 
			 2012 300,000 
			 2013 700,000 
			 2014 1,300,000 
			 2015 2,200,000 
		
	
	Data and modelling limitations mean it is not possible to provide details of the saving for indexation only. However we estimate that the saving relating to revaluation would be greater than that for indexation.